Business News – Week ending August 13th 2016.

The Olympics are in full swing and the football season has restarted. If there was ever a reminder that sport plays a big part in the mechanics of the world-wide events. Football is a season long sport, the Olympics a once every four years opportunity. Both are planned for carefully, and resilient to change. Sports people know that winning comes at the end of lots of practice, lonely work, and deep commitment. It’s not for everyone, but if it is for you then you must give it everything. All the time.

If you run a business it’s no different. We must plan not just what we do at the big events, for our market, but also what we will do in order to be the best we can be when we are performing.

The commitment and sacrifice that others see; is your life, every day. Is it worth it, yes, always.

The government has confirmed this week that the Apprenticeship levy will still be launched next April putting a levy of 0.5% of payroll of the largest companies in order to help fund subsidising the cost of taking on Apprentices. For smaller business, there is obviously an opportunity to hire new apprentices at much lower cost than before, but that’s not the only consideration. A number of business commentators have been critical of the scheme claiming that it is poorly designed, and the CBI wanted it delayed, citing the speed of its introduction. With confirmation that it is to go ahead, now is the time to consider if you would benefit from having apprentices in your business. If so then it makes sense to start the process of finding the right person now.

Interest Rates

This week saw the base rate halved by the bank of England, I, and many other commentators feel it could fall further, initially to perhaps 5 basis points (0.05%), but possibly negative in 2017. The IoD suggest that the issue is no longer access to funds, or liquidity but confidence. The biggest dent to which has been #brexit.

The cost of capital is not the major factor for business at the moment, with a survey of IoD members showing this week that six in ten think this interest rate cut will not have a discernible effect on their performance.